Page 282 - merged.pdf

CHAPTER 9 GROWING YOUR BUSINESS EMPIRE

At this early stage, your team will usually have the enthusiasm
and commitment but would lack the knowledge, experience
and skills to perform their roles. Your leadership style therefore
should be task orientated. In other words, just give people
clear goals and directions and focus on getting the job done.

Note that 60% of businesses fail at this stage because of
inadequate cash flow as well as poor sales and marketing.
Once you can survive this first stage, you will move into the…

Stage Two: Early Growth Stage

At this stage, your company
has become profitable and
your goal has turned from
survival to expanding your
market share and growing
your profits.

Your business functions (like
marketing, operations, finance
etc…) would have become more formalized and reporting
structures would be in place.

Challenges:
Although your company may be making enough profits, your
challenges are far from over. In fact, this stage will bring you
even greater challenges than before.

As you seek to expand your business, you will probably run
into cash flow problems. You will need to ensure that you
generate cash fast enough to hire more staff, open more
offices and engage in marketing activities. As the owner,
you will have to watch and manage your cash flow very

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 273